Lotte Corporation Secures 100% Stake in Lotte World Tower and Mall... Strengthening Asset Management Business (Comprehensive)
Acquisition of 25% Stake Owned by Lotte Shopping and Hotel Lotte for 1.4 Trillion KRW
[Asia Economy Reporter Jo In-kyung] Lotte Property & Development has acquired all the shares held by its affiliates to secure stable profit generation and enhance future corporate value of Lotte World Tower and Lotte World Mall.
On the 22nd, Lotte Property & Development announced that it will acquire a 25% stake in Lotte World Tower and Mall held by Lotte Shopping and Hotel Lotte for 1.4 trillion KRW. As a result, Lotte Property & Development becomes the sole owner holding 100% ownership shares, including land and buildings of Lotte World Tower and Mall.
Previously, Lotte World Tower and Mall were operated with ownership shares invested by three companies: Lotte Property & Development with 75%, Lotte Shopping with 15%, and Hotel Lotte with 10%.
Through this share purchase, Lotte Property & Development has laid the foundation to strengthen its capabilities in real estate and asset management business. Lotte Shopping and Hotel Lotte also secured funds of 830 billion KRW and 550 billion KRW respectively, allowing them to focus on their core businesses.
Lotte Property & Development is responsible for the development and operation of Lotte World Tower, the tallest building in Korea, and the representative complex shopping mall Lotte World Mall. This year, all office leases in Lotte World Tower have been completed, and the residential facility 'Signiel Residence' is also being sold more smoothly than initially planned. Lotte Property & Development previously acquired the asset management business (Property Management) from Lotte Asset Development.
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A company official stated, "With this share acquisition, stable profit generation and rapid decision-making tailored to the rapidly changing market environment have become possible, enabling proactive activation of on-site operations and responsible management." He added, "We plan to grow into a specialized asset management company based on the future asset value of Lotte World Tower and Mall, while enhancing asset flexibility to secure competitiveness in new businesses."
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